THE Dr Keith Rowley-led government is touting the idea that the country’s infrastructure can only be maintained through the enforcement of the new rated property tax.
Formerly known as the Land and Building Tax Act, it was surrendered in 2010 after much lobbying and political pressure, resulting in a tax concession up until today.
The then PP Government was the one who gave the concessions. Now renamed The Property Tax Act, the current administration has proposed several amendments to the original tax legislation.
The new calculations proposed are as follows:
Residential-3% of the Annual Taxable Value;
Vacant residential land -3.5% of Capital Value less 10%;
Commercial -5% of the Annual Taxable Value;
Vacant commercial land -5% of Capital Value less 10%;
Industrial with buildings-6% of the Annual Taxable Value;
Industrial without buildings-3% of the Annual Taxable Value; and
Agricultural-1% of the Annual Taxable.
They have stated that estimated revenue to be collected from property tax is around $500 million dollars but all citizens are dreading the implementation of this property tax because now is not the time to implement more taxes on an already overburdened population.
In reality, we pay taxes for everything that we purchase including stamp duty when purchasing a home. A house purchased for $3.5 million cost a homeowner a stamp duty of approximately $160,000.
Many services companies charge 12.5% VAT on their services even in the hospitality sector, so we never seem to get away without paying taxes. Even on car parts and accessories, we are charged 30% duty and 2.5% VAT.
Instead of imposing the property tax at this time, where citizens can’t even afford the skyrocketing prices of food, the government should carefully assess the areas where they are overspending.
The opposition has pointed out over and over again the high prices we the taxpayers are paying for rental properties to the friends, families and financiers of the PNM government. One member of Parliament has been named over and over again and several go undetected. However, the truth of the matter is that the rental market is soft because of the downturn in the market and the government should reassess their leases being charged on these properties:
All properties that they currently rent or lease, because the market is very soft, they should renegotiate property rentals just as they have always boasted of renegotiating with the multinationals for better returns. Port of Spain has many unoccupied properties that can be gotten for way below the rental cost they currently pay for similar properties at this time;
All properties owned by the government that are not occupied – these should be evaluated and refurbished. Just walk down St Vincent Street and you will see these massive government buildings in disrepair and vacant. All they need is to be refurbished and repurposed;
Buildings rented and not utilised – the government has many buildings they are paying rent on but have not been occupied or utilised for long periods. We need to stop paying rent in these buildings.
If all these expenditures that are mismanaged by the government were to be managed properly, there would be no need to force down our throats the property tax. Citizens are already suffering and overburdened at this time.
The problem in this country is not the lack of money but rather the proper management and allocation of it. That should include greater efforts by the Ministry of Finance to ensure more economical pricing to the state is afforded.
The government and the Ministry of Finance are trying to sell the population a bag of goodies that the property tax will improve our lives, this is poppycock.
The government needs to look internally and fix their systems to manage and budget properly, before they come with implementing another harsh austerity program on us. Yes, we know we must pay property taxes but now is not the time for it. Without local government reform which has been in the making under this PNM Government for the whole time they have been in government, all we will see is more mismanagement.
This only means putting more money in the hands of inefficiently run corporations and more bad spending on infrastructure without checks and balances.
Whilst many people debate the timing of the resumption of property taxes due to the prevailing economic downturn, it is clear that this government will proceed as planned right after the Local Government Elections to implement the property taxes, even if the people cannot afford to purchase food.
The population is always the fall guy to continuously tax us to death when more money is needed by the government but we all have our limits, we cannot get blood out of a stone.
The population keeps getting “doubles” from this government with no channa and only pepper!
Dr Neil Gosine is an insurance executive. He is also the treasurer of the UNC and a former chairman of the National Petroleum Marketing Company of Trinidad and Tobago. He holds a Doctorate in Business Administration, a Master’s in Business Administration MBA, BSC in Mathematics and a BA in Administrative Studies. The views and comments expressed in this column are not necessarily those of AZP News, a Division of Complete Image Limited.
Property Tax like Doubles with Pepper, No Channa
THE Dr Keith Rowley-led government is touting the idea that the country’s infrastructure can only be maintained through the enforcement of the new rated property tax.
Formerly known as the Land and Building Tax Act, it was surrendered in 2010 after much lobbying and political pressure, resulting in a tax concession up until today.
The then PP Government was the one who gave the concessions. Now renamed The Property Tax Act, the current administration has proposed several amendments to the original tax legislation.
The new calculations proposed are as follows:
They have stated that estimated revenue to be collected from property tax is around $500 million dollars but all citizens are dreading the implementation of this property tax because now is not the time to implement more taxes on an already overburdened population.
In reality, we pay taxes for everything that we purchase including stamp duty when purchasing a home. A house purchased for $3.5 million cost a homeowner a stamp duty of approximately $160,000.
Many services companies charge 12.5% VAT on their services even in the hospitality sector, so we never seem to get away without paying taxes. Even on car parts and accessories, we are charged 30% duty and 2.5% VAT.
Instead of imposing the property tax at this time, where citizens can’t even afford the skyrocketing prices of food, the government should carefully assess the areas where they are overspending.
The opposition has pointed out over and over again the high prices we the taxpayers are paying for rental properties to the friends, families and financiers of the PNM government. One member of Parliament has been named over and over again and several go undetected. However, the truth of the matter is that the rental market is soft because of the downturn in the market and the government should reassess their leases being charged on these properties:
If all these expenditures that are mismanaged by the government were to be managed properly, there would be no need to force down our throats the property tax. Citizens are already suffering and overburdened at this time.
The problem in this country is not the lack of money but rather the proper management and allocation of it. That should include greater efforts by the Ministry of Finance to ensure more economical pricing to the state is afforded.
The government and the Ministry of Finance are trying to sell the population a bag of goodies that the property tax will improve our lives, this is poppycock.
The government needs to look internally and fix their systems to manage and budget properly, before they come with implementing another harsh austerity program on us. Yes, we know we must pay property taxes but now is not the time for it. Without local government reform which has been in the making under this PNM Government for the whole time they have been in government, all we will see is more mismanagement.
This only means putting more money in the hands of inefficiently run corporations and more bad spending on infrastructure without checks and balances.
Whilst many people debate the timing of the resumption of property taxes due to the prevailing economic downturn, it is clear that this government will proceed as planned right after the Local Government Elections to implement the property taxes, even if the people cannot afford to purchase food.
The population is always the fall guy to continuously tax us to death when more money is needed by the government but we all have our limits, we cannot get blood out of a stone.
The population keeps getting “doubles” from this government with no channa and only pepper!
Dr Neil Gosine is an insurance executive. He is also the treasurer of the UNC and a former chairman of the National Petroleum Marketing Company of Trinidad and Tobago. He holds a Doctorate in Business Administration, a Master’s in Business Administration MBA, BSC in Mathematics and a BA in Administrative Studies. The views and comments expressed in this column are not necessarily those of AZP News, a Division of Complete Image Limited.